The history of Mayagüez began long before its official recognition, when a small settlement existed on the banks of the Yagüez River. The official founding date of the city is considered to be September 18, 1760. It was then that a group of residents led by Faustino Martínez de Matos received permission from the Spanish Crown to establish a separate municipality, which was initially named Nuestra Señora de la Candelaria de Mayagüez.
The transformation of the small settlement into an important urban centre was facilitated by a unique combination of natural and social conditions:
- Geography and Water Resources: The city's name comes from a word in the Taino Indian language meaning "place of the Yagüez River" or "clear waters". Access to fresh water and fertile soils became the foundation for the life of the first colonists.
- Strategic Port: Its location on the western coast of Puerto Rico, by the Mona Passage, made Mayagüez a natural maritime gateway. A deep and convenient harbour facilitated the development of shipping.
- Political Autonomy: The distance from the capital, San Juan, and the roads through the mountain range—which were difficult to traverse at the time—allowed local authorities and merchants to act more independently, developing their own trade connections.
In the early period, the economy of Mayagüez was based on agriculture. The region quickly became famous for the production of high-quality coffee, sugar, and tobacco. The port ensured the export of these goods and also served as a channel for the import of European goods and ideas.
Thanks to active trade, by the 19th century, the city acquired the status of the cultural capital of western Puerto Rico. A community of intellectuals and entrepreneurs formed here, and the architectural appearance of the city began to reflect the wealth accumulated through maritime commerce and plantations.